Personal Finance: Taxes

What information does the W-2 form provide?

A W-2 form provides the information to file a tax refund

Identify one advantage of using tax filing software to file your taxes.

A software is quicker and can help find more refunds

True or False: You do not need to pay taxes if you earn income in cash.

False

True or False: You need a W-2 form only for filing your federal taxes, not your state taxes.

False

When are 1099 forms sent out?

February 15th

What is a 1099 form?

Form that lets you know all of the interest you've made, the investments you have, sales.

When do W-2 forms have to be sent out by?

January 31st

What is the difference between net pay and gross pay.

Net pay is what you bring home, and gross pay is what you make before deductions

Identify two deductions you will see on your pay stub.

Social Security Tax and FICA Tax

When you start a new job, you receive a form that you use to prove that you are eligible to work in the U.S. What is this form?

This is an I-9 form

What is the benefit of filing a tax return even if you did not make more than the standard deduction?

You could get a refund

The more allowances that I claim on my W-4, the (fewer/more) taxes will be withheld from my paycheck.

fewer

Complete the following sentence: How much you pay in taxes depends on

How much you make

What is the purpose of a W-4 form, and when do you receive it?

The purpose of a W-4 form is to make sure the amount of money being deducted is correct. You receive it when you get your paycheck

Explain why we pay taxes.

We pay taxes to fund service people like the military, police, and construction workers. We also pay taxes to pay for constructions like roads, highways, and railroads. Taxes also pay for Medicare and social security funds.